Coinbase Backs IQMM ETF as Stablecoin Rules Take Shape

Coinbase has made an undisclosed investment in the ProShares GENIUS Money Market ETF (IQMM), a fund designed to hold assets that qualify as reserves for payment stablecoins under the GENIUS Act. Launched in February, IQMM invests exclusively in short-term US Treasury securities and cash-equivalent instruments with maturities of 93 days or less, providing a publicly traded way to access the liquid assets the law specifies.

The GENIUS Act requires stablecoin issuers to back tokens with highly liquid assets, including cash, bank deposits and short-term US Treasuries. Coinbase said the investment aligns with its growing stablecoin business and cash-management operations. As a primary infrastructure provider for Circle’s USDC, the company has an interest in expanding the pool of regulated, liquid investment vehicles for managing stablecoin reserves.

The move follows the GENIUS Act’s passage in June 2025, even as lawmakers continue debating the broader Digital Asset Market Clarity (CLARITY) Act.

United States

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